The $190 Billion IT and BPO Services in India Reel Under Covid-19 Pressure!


  • US market accounts to more than 60% of the IT and BPO sector
  • 5 million people find employment in this sector

New Delhi: With the rapid spread of COVID-19 and more and more restrictions being imposed by civic bodies every day, business continuity and business growth for India’s vast IT & BPO sector are in trouble. Many of these companies are now considering to ask employees to work from home.

However, with data privacy laws getting tougher it is impractical to ask employees to work from home because of the sensitivity of the customer data involved in the operations. The US market accounts for over 60% of business for this sector.

The IT and BPO sector employees nearly 4.5 million people in its workforce. The sector was all set to achieve a growth rate of 7.5% until business was disrupted by the coronavirus pandemic.

Microsoft says that its collaborative work software ‘Teams’ has seen a usage jump of over 500% in the recent months after the outbreak. To help employees work remotely, tools like Skype and Zoom have also been recently deployed by many employers.

Senior Vice-President of NASSCOM, Sangeeta Gupta has recently said, “You can’t shift people from, say, Chennai to Delhi (like it happened during the Chennai floods in 2015) to keep a business functioning. Besides, travel, hospitality and aviation verticals might see a dip in growth in IT spending as coronavirus has directly impacted all three, due to travel bans and grounding of flights.”